2005 (7) TMI 461

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....o March 1995. The appellants took deemed credit of Rs. 11,72,650/- and Rs. 3,32,976/- during the said period on the ship breaking scrap in terms of Board's Letter F. No. T8/36/94-TRU, dated 1-3-1994. Out of the said amount of credit the Commissioner (Appeals) confirmed denial of credit of Rs. 11,72,600/- and Rs. 3,32,976/- imposed a fine of Rs. 2,00,000/- after confiscating the plant & machinery, imposed a penalty of Rs. 25 lakhs on the appellant company under Rule 173Q and imposed a penalty of Rs. 10 lakhs under Rule 209A on the power of attorney holder.  3.The appellant company was a re-rolling mills. When it came to know of the circular above cited they took credit of the said amounts as deemed credit on 7-11-1995 on the inputs p....

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....s order shall come into force on the 1st day of April, 1994. [M.F. (D.R.) Order No.TS/36/94-TRU dated 1-3-1994]". "Modvat - Deemed credit to ship breakers, denial of It has been brought to the notice of the Board that scrap generated by breaking of a ship etc. is not being allowed deemed Modvat credit by certain field formations. The ship-breakers have also represented to the Board. The matter has been examined and the following instructions are issued :- Rule 57G of the Central Excise Rules, 1944 stipulates that the Government has the power to allow deemed credit having regard to the period that has elapsed since the duty of excise was imposed on any inputs, the position of demand and supply of the said inputs in the country and a....